California vs. the Productive Class

California is sinking fast economically, as we explained in States in Budget Crisis.

The Los Angeles Times points out that California placed 48^th in a study of business-friendly states, trailed only by New York and New Jersey -- and that was the good news. A few weeks later, the Times reported even more dismal information.

Leading with the news that Chief Executive magazine had named California the worst place to do business for the eighth year in a row, they went on to detail some of the reasons.

Its 10.9% unemployment rate is only lower than Nevada's and Rhode Island’s. A third of U.S. welfare recipients live in California, the report noted. High state taxes and bundles of red tape make operating a business in the state unaffordable to many companies, critics say.

Last year, 254 California companies moved some or all of their work and jobs elsewhere -- 26% more than 2010. Most chief executives in Silicon Valley said they won't expand in the state, according to the survey.

In The California "Austerity" Trap, Robert Upshaw points out that California's expected budget shortfall has mushroomed to $16 billion and in response, Governor Jerry Brown offered a plan that ups the top tax bracket rate by 3% for the next seven years and increase sales taxes by one-fourth of 1 percent for four years.

In response to these woes, California's solution is to attack its underground economy, estimated by the state at between $60 and $140 billion, rather than lowering the tax and regulatory burdens that have driven that substantial portion of the economy underground, as Reason reports.

History Through a Different Lens

Author's Note: The theory advanced here is painted in extremely broad strokes, since I wanted to tell the story in one easily-digestible blog post. I'll expand on particular issues in future blog posts.

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As part of the exploration of the transition that society is facing, it would be well worth our while to understand how we got into this sorry mess in the first place.

I often wondered how a society founded on innovation, self-reliance, and respect for the individual and individual choice above all else morphed into the society we see around us today. I found one plausible explanation in the pages of The Homebrew Industrial Revolution: A Low-Overhead Manifesto, by Kevin Carson.

When I first started reading The Homebrew Industrial Revolution (THIR), I was expecting a technical treatise. However, before the author got to that, he embarked on a tour of the evolution of society during the Industrial Revolution that is, to put it mildly, considerably at odds with the one we all learned in public school.

Fondling Fees Expected to Double

You may soon be paying twice the price for that affectionate send-off you receive from agents of the Transportation Security Administration. The Democratic-controlled Senate Appropriations Committee has approved an increase in the one-way fee from $2.50 to $5.00, and in the round-trip fee from $5.00 to $10.00. No "two-fer" specials have been announced to date.

The author of the proposal, Sen. Mary Landrieu, D-La., said that the current fee structure only covers about one-fourth of TSA's airport security costs and that people who fly should bear a greater cost of TSA's $7.6 billion budget – rather than taxpayers as a whole.

Let's not forget that they're going to need all these funds to expand VIPER, the Visible Intermodal Prevention and Response teams, which have been increasingly a presence in metro stations, ballgames, on highways, in truckstops, and at Amtrak stations. Talk about an appropriate acronym!

Universal Soldier

Story Updates 5/27/12

If you haven't liked the Tireless Agorist page on Facebook you haven't heard the latest on some of the stories we've reported here. Click the link above and like the page, or use the button near the bottom of the sidebar to stay up-to-date.

Today we've got updates on Detroit, Emily Miller, armed drones, Tombstone, AZ's ongoing water battle, a new source for Phoenix Society type information, and more on the Ron Paul Revolution.

The Tipping Point

"In matters of fashion, swim with the current.
In matters of conscience, stand like a rock."
Thomas Jefferson
Important lessons and a glimmer of hope for liberty activists can be found in the conclusions of research conducted at Rensselaer Polytechnic Institute, as well as in the work of Malcolm Gladwell.

Scientists at Rensselaer Polytechnic Institute have found that when just 10 percent of the population holds an unshakable belief, their belief will always be adopted by the majority of the society. The scientists, who are members of the Social Cognitive Networks Academic Research Center (SCNARC) at Rensselaer, used computational and analytical methods to discover the tipping point where a minority belief becomes the majority opinion.

To reach their conclusion, the scientists developed computer models of various types of social networks. The initial state of each of the models was a sea of traditional-view holders. Each of these individuals held a view, but were also, importantly, open minded to other views.

Once the networks were built, the scientists then “sprinkled” in some true believers throughout each of the networks. These people were completely set in their views and unflappable in modifying those beliefs. As those true believers began to converse with those who held the traditional belief system, the tides gradually and then very abruptly began to shift.

It's important to note that these results are based on a core of "true believers," completely set in their views, but that the traditional-view holders were open-minded to other views. Those assumptions hold two important lessons for liberty activists.

The first: As Thomas Jefferson argued, "In matters of fashion, swim with the current. In matters of conscience, stand like a rock." Know your principles, stand firmly in support of those principles, and don't get distracted by secondary issues.

The second: Remember the assumption that "traditional-view holders were open-minded to other views." Don't waste your efforts on other "true believers" who are as committed to the growth of the state and the curtailment of liberty as you are to freedom. Leave that fringe to their own devices; the only power they have over you is the power to distract you from the education of the open-minded.

Connecting the Dots: Obama's Value

What Makes Obama Worth a Billion Bucks?
First Dot: President Obama just became the first politician to ever collect over a billion dollars in career political contributions.

His total take reached $1,017,892,305 in April, some nine years after he began his 2004 race for the Senate. Obama is widely expected to raise at least $300 million more before November.

Second Dot: The Washington Post reports White House visitor logs provide window into lobbying activity.

Is Directive 10-289 in Our Future?

I'm currently rereading Ayn Rand's Atlas Shrugged, thanks to an ongoing discussion of the book with a first-time reader-friend from the previously mentioned Absolute Write Politics & Current Events forum.

For those not familiar with the novel, it tells the story of an America choking on special favors and regulation, where each attempt to "fix" things leads only to more problems, where legislation promoted for the "common good" instead serves to line the pockets of the politically-connected, where regulations claimed to promote stability instead institutionalize stagnation. An America where "too big to fail" applies not only to banks, but to the steel mills, copper mines, and railroads of those who curry favor with the administration.

An America, in short, not too far distant from the one we inhabit today.

Austrians Ascendent

The curious task of economics is to demonstrate to men
how little they really know
about what they imagine they can design.
F.A. Hayek, The Fatal Conceit, 1988

The Austrian School of economics, for many years considered "fringe," or heterodox, has nonetheless proven startlingly prescient, as the quotes from two famous Austrians in the photograph above illustrates. Now, in the midst of the Great Recession, some attention is being paid once again to the school of economic thought that led Mises and Hayek to express their contrarian positions before the 1929 stock market crash.

The Austrian School of Economics

Briefly stated, the Austrian School argues that economics is a social science, rather than a physical one, that human behavior in the aggregate is so complex as to make economic modeling all but impossible, and that the proper approach to understanding economics is through the deductive discovery of fundamental laws of human action rather than through analysis of historical data.

Mainstream economists operate primarily from the latter, inductive, form of reasoning, while the Austrian School is built on a foundation of deductive reasoning from first principles, also known as axioms.

Licensed to Live: Occupations

Author's Note: Just below the masthead at the top of the page you'll see a new Contents link. The linked page lists all Tireless Agorist columns, arranged loosely as a table of contents or reading list by category. I hope you find it useful for exploring The Tireless Agorist.

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In 1787 one could get most any job or open most any business without seeking the government's permission to do so. Today, nearly one in three U.S. workers needs a license to pursue their chosen occupation, and starting a new (legal) business without the involvement of both a state-licensed attorney and a state-licensed accountant is a fool's errand. Two recent studies do much to explain the rapid growth of the underground, apolitical economy that we explored in The Apolitical Economic Superpower and the rest of the Phoenix Society series of columns.

Occupational Hazards

The Institute for Justice recently released Occupational Licensing in 50 States and D.C., a study examining the impact of licensing on 102 low and moderate-income occupations. In 1950, only one in 20 U.S. workers needed a license to pursue their chosen occupation. Today, the ratio approaches one in three.